1.) Among senior debt, subordinate debt, and preferred stock, which will be paid last in a bankruptcy?

A.) Senior Debt

B.) Subordinate Debt

C.) Preferred Stock

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2.) The owners of unsecured debt do not have claims on any firm assets in an event of default

A.) True

B.) False

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3.) When convertible bondholders convert, their shares' value depend on the company's value because they now own a constant percentage of the company

A.) False, they will own a constant amount as they do when they hold the bond

B.) False, they will own a various percentage of the company because the companys value changes over time. C.) True